The NRAU, or New Urban Lease Regime, is a set of laws that aims to respond to problems related to urban leasing : contracts with rents prior to 1990, rehabilitation works on rented properties, Eviction Action, etc.

The growing demand for rent as a result of the crisis in the construction and real estate market and the lack of affordable rental offer determined that the reform of urban leasing should be assumed as a priority objective in the field of housing.

It aims to provide an answer to some of the problems related to urban leasing, namely those related to rent contracts prior to 1990, the difficulty of carrying out rehabilitation works on rented properties and the delicate eviction action.

The NRAU came into force in November 2012, through Law No. 31/2012 , subsequently amended by Law No. 79/2014 of December / 14, and Law No. 43/2017 of June 14th / 17. The NRAU introduced several legislative changes in relation to the legal regime for urban leasing, of which there are:

Greater freedom in the duration of contracts between the parties

There is no longer a minimum term In the case of lease contracts for housing purposes, there is no longer a minimum term for the contracts, and if the parties do not stipulate a term, the contracts are considered to be concluded for a certain term of 5 years;

In non-housing contracts, the parties remain free to establish the duration of the contract, providing that, in the event of silence by the parties, the contract is considered to have been concluded for 5 years.

Greater emphasis on the negotiation of the parties in updating old rents

In housing contracts concluded before 1990, the update is based on a rent negotiation mechanism by the parties, however, situations of economic shortage and tenants aged 65 or more or with an equal or higher degree of disability are safeguarded. at 60%;

For non-housing contracts signed before 1995, a rent negotiation mechanism between the parties was also established, without prejudice to the provision of a 10-year transitional period for micro-enterprise cases.

Duration of the transition period from old contracts to the new regime

After a period of 8, or 10 years, the income from housing contracts can be updated, and it is up to Social Security to find an answer to situations of economic need;

Lease agreements with 65 or more years of age or with a degree of disability equal to or greater than 60%, only pass through the regime, or terminate the contract, by agreement between the parties.

New regime for carrying out works on rented buildings

The regime of Law no. 31/2012, of 14 August, of denunciation for demolition or deep works is based on negotiation between the parties, and, in the absence of an agreement, there is a payment of compensation;

The denunciation regime for works is completed and developed by Law no. 30/2012 , and Law no. 43/2017, of June 14, which reviews the legal regime for works in rented buildings and reinforces the link between this regime and the urban rehabilitation.

Special eviction procedure

A procedure is foreseen that runs, in large part, through extrajudicial means, making it easier and less time-consuming to vacate the rented place due to the tenant's default, namely in cases of non-payment of rents, expiry of the contract for the term and termination of the contract as opposed to renewal or termination.

Updated on: 
19. September 2019
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